Dannon capitalizes on cloud tech for #1 spot

NASHVILLE, Tenn. — Dannon is leveraging IBM's cloud-based predictive analytics in an attempt claim the number one spot, currently held by Chobani, in the $7 billion U.S. yogurt market.

Dannon is streamlining its forecasting process by analyzing shopper behavior, leading to improved predictions on product volume and profitability. The company currently produces approximately 200 types of flavors, styles and sizes of cultured refrigerated and frozen dairy products and is a leading yogurt maker worldwide under the Dannon and Danone brands. It is trying to maintain its competitive advantage in the growing yogurt category, in which segments such as Greek yogurt are rapidly gaining ground.

Dannon is using IBM’s tools and statistics to precisely anticipate how much additional yogurt is needed by its retailer customers, while also keeping in mind yogurt's limited shelf life, in an effort to avoid empty shelves and wasted overproduction.

"Our goal was to eliminate the time our sales team was spending on forecasting and instead focus their attention on executing their promotional plans, allowing them to work more closely with our retailer customers," said Timothy Weaver, Dannon’s CIO. "Through IBM's planning solutions, we not only streamlined the forecasting process for our sales team, but we increased our planning accuracy from 75% to 98%, helping us to further distinguish ourselves as the leading yogurt maker."

"Dannon works with retailers across the country to make sure their shelves are filled with the precise product volume and promotions for each store location to meet shopper demand," said Craig Hayman, GM, IBM Industry Solutions. "Through the use of predictive analytics, Dannon is able to understand, plan, and predict their business in ways that were unimaginable a few years ago."